Employment Vulnerability and Earnings in Kyrgyzstan

Employment vulnerability is considered as working under inadequate conditions. This research examined the impact of employment vulnerability on earnings with special reference to gender-based differences. Analyses were based on panel data for 2010-2013 and 2016 from the household survey. A panel data fixed-effects model with instrumental variable within the Lewbel (2012) method was applied to estimate an earnings equation. Results indicates negative impact of employment vulnerability on earnings. Women experienced this negative effect more severely. Given these empirical findings, government labour-market policy should not focus on increasing employment alone, but should also address the issue of vulnerability of employment, improvement of working conditions, and expanding employment opportunities for women.

Keywords: employment vulnerability; wage; self-employment